Outsourcing IT Trending to Continue in 2011–Algorithms Constantly Updated/Created in Healthcare to Allow Expansion and Con
Posted Dec 20 2010 4:27pm
Nowhere is this better exploding than in the area of Health IT. This is a good article that is basically stating “it is what it is” in terms of who and were IT Infrastructure lies according to today’s business trends and drive for profits. If in healthcare you have probably already experienced a lot of this will call centers in other countries and perhaps your medical claims being processed outside the US to the point to when you call customer service, even they can’t find the status as sometimes all are not connected on the data end. You can read this quote from below too that again brings about the reality of needing digital laws or a Department of Algorithms as I share this same thought, the 70s folks are at the helm and the technology folks just keep on moving as without laws or those who can create laws to regulate some of this without some strong Algo Men to advise and help put it together for them. I think they try but when I see items like abortion back on the agenda again, well you know we are back to the 70s.
“But any proposed protectionist legislation will be marked mostly by sound and fury. "Most of these measures will fail to gain traction and pass into law, and those that do will be difficult to implement and audit," says Bendor-Samuel.”
One item in particular I like that is mentioned here is the “back door deals” that happen outside the knowledge or consulting of the CIO. This is beginning to happen more frequently and without a CIO that ties everything together, companies end up spending tons more than needed and sometimes areas of security are left untied, so the CIO needs to be included and consulting with and not to the point of burning them out either, and I am starting to see some of that with complicated IT infrastructures and those in a company outside of this area want a 30 second answer when it is not possible without a study and full analysis, so don’t get impatient with the CIO. Gaps between what consumers and employees want versus what can be implemented safely and with cost effectiveness are growing.
One other point well made here too is that countries with strong economies will be the beneficiaries of outsourced business and this is starting to show a bit as well. That doesn’t mean they will be paid the best but they will have a big share of IT business. It is getting interesting too with working on the new ACO models, so where do we go from here, do we bring these outsources in the plan too? I think that is a good question as we all collaborate today and the entities and who’s doing what today are complicated.
China, Brazil, and Egypt are the outsourced horizons so do they need to learn our ACO models or do they just run transactions for profit? Now that’s a real loaded question to ponder. BD
Outsourcing activity is expected to creep back in 2011, but things are hardly getting back to normal in the IT services space. The new year will be marked largely by upheaval—smaller contracts, cloud-related chaos, increased offshoring and decreased quality, for a start.
Facing a slow economic recovery, IT leaders will continue to scour their existing outsourcing arrangements for savings . "There's a pot of gold in every contract, and in some cases we have found a pot worth millions," says Mark Ruckman, an independent outsourcing consulting working in conjunction with Sanda Partners. IT services customers may reconcile their invoices with their original contracts with an eye toward under-delivery or over-payment, for example, or replace contractors from large sourcing providers with IT professionals from local temp agencies.
Many of the discussions and decisions about cloud-based offerings will be handled by business unit or function owners rather than IT, says Kamran Ozair, executive vice president and CTO at offshore outsourcer MindTree. That could pose problems down the road. "CIOs must get ahead of business users reasonable zeal for the power of focused SaaS applications that could back the enterprise into stealth architecture decisions that could be expensive to undo," says Trowbridge. "Business stakeholders want cloud, and they know smart CIOs can mitigate its risks," adds Fersht. "However, IT professionals must tool-up to deliver cloud to their business stakeholders, otherwise they risk a gap growing between business demand and IT supply
And service providers will continue to shift their delivery centers to markets such as China, Brazil , and Egypt, and not simply to address issues such as wage inflation or staff attrition. They want a piece of the business in hot emerging markets. "Strong sourcing market growth will be in geographies with strong economies, led by Brazil, China, India and the Middle East," says Bendor-Samuel of Everest. "Countries with strong economies represent big markets with big demand for transformational and discretionary spend activity."